Second half of 2018 boosts Brazilian chicken exports

By Aidan Fortune

- Last updated on GMT

ABPA's latest export update has been described as the "best performance over the past three years".
ABPA's latest export update has been described as the "best performance over the past three years".
A strong end to 2018 helped Brazilian chicken meat exports reach 4,100 million (m) tons.

According to the Brazilian Association of Animal Proteins (ABPA), the sector saw monthly average shipments of 377,300 tons in the second half – the best performance of the last three years. This meant the sector reduced accumulated losses in the first six months of 2018 (down 13.4% compared to the first half of 2017) and closed the year with a 5.1% decrease compared to the 4,320m tons exported in 2017. Total exports for the country in 2018 generated revenues of US$6.571bn, 9.2% lower than the US$7.235bn recorded in the previous year.

Exports in the last month of 2018 reached 352,800 tons, 9.9% more volume than the 321,100 tons shipped in the same period of 2017. The performance of sales in the month of December guaranteed a rise of 11.3% for the period, with a balance of US$581.4m – against US$522.5m in December 2017.

"It is expected that the good flow achieved in the second half of last year will continue in 2019," ​said Francisco Turra, president of ABPA. “This is due, among other reasons, to the actions that the production sector, led by ABPA, will adopt through Project 500K, which aims to achieve the monthly average of 500,000 tons in total exports of poultry and pork by the end of 2020.”

ABPA reported that pork exporters also recorded increases in the second half of the year, as well as in the last month of the year.

In December, there was an increase of 8.8% in shipments of fresh pork, with a total of 47,700 tons in the last month of 2018 – in December 2017, sales reached 43,900 tons. 

As a result, the sector ended the year with total exports of 549,000 tons, a volume 7.4% lower than the 592,000 tons recorded in 2017. The losses of 19.5% accumulated in the first half of the year (in comparison with the first half of 2017) were reduced by an increase of 4.5% in the last six months of the year.

In revenue terms, pork sales totalled US$94.8m, 7% lower than the same period in 2017, at US$101.9m. For the entire year, sales generated revenues of US$1.115bn, 23.9% lower than the previous year, with US$1.465bn.

Ricardo Santin, executive director of ABPA, attributed the growth in the second half of the year to increased sales to China.

“The pace of sales to China was key to the sector's export performance in 2018. It is expected that the flow into the Asian market will continue, boosting sales in the sector as Russia gradually resumes imports of Brazilian products.”

Related topics: Industry & Markets, Brazil, Poultry

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